ANNOUNCEMENT 08 Apr 2014

In April 2014, the government of South Africa announced a change in the local input requirements for the participation in certain public purchases.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE



The DTI, April 2014, 'Industrial Policy Action Plan 2014/15-2016/17: http://www.thedti.gov.za/DownloadFileAction?id=851


Inception date: No inception date

Public procurement localisation

Early in April 2014, the South African Department for Trade and Industry (DTI) published its annual update to the Industrial Policy Action Plan (IPAP), containing numerous pledges to strengthen localisation of products and sectors. The main changes are:

  • Under a public infrastructure investment programme currently being rolled out, 'robust localisation measures' will be implemented for electric energy infrastructure projects (pp. 30-31).
  • The localisation programme for 'Exotic Leather', which previously was restricted to the manufacture of products made from crocodile hides, will be extended to include the manufacture of ostrich hide products in the new financial year (p. 73).
  • The Automotive Production Development Programme (APDP) is to undergo a review, with a focus on further localisation of the manufacture of light vehicles, such as passenger motorcars. Additionally, increased levels of localisation are sought under the Automotive Supply Chain Competitiveness Initiative, affecting all automotive supply chains (p. 75-76).
  • In the 'Metal Fabrication, Capital & Rail Transport Equipment' sector, further localisation measures are in the pipeline as well (p. 79).
  • As of October 2015, it will be mandatory to blend 2% of locally produced bioethanol into petrol (p. 84).
  • The existing local content targets of the Renewable Energy Independent Power Producer Procurement Programme are to be reviewed with a view to increasing the local content (p. 112).
  • The shipbuilding sector is to be designated as a strategic sector for local development, which means that local content requirements and public procurement preferences are to be put in place (p. 123-124).
  • The nuclear energy sector is to receive investments targeting a boost in local procurement and an enforcement of localisation (p. 125-126).
  • In the electronics industry, public procurement will be leveraged in support of localisation (p. 138).

Further details, such as the amounts and shares of local content involved, will be laid out in the respective pieces of implementing legislation for each sector.